System and method for enabling use of loyalty program points as a stored value payment device

Abstract

A method and system for enabling use of loyalty program points as a stored value payment device. In one preferred embodiment, the method may include the steps of receiving, from a first computer associated with a user, a desired value of the stored value payment device; determining a pricing factor applicable to at least one of the user and the desired value of the stored value payment device; converting the desired value of the stored value payment device based on the pricing factor to an equivalent value; sending, to the first computer associated with the user, the determined equivalent value; debiting a number of loyalty program points from user's loyalty program account; and creating a stored value payment device having an initial real-time debitable balance equal to a cash value. In one preferred embodiment, the system may include a controller, a rules engine, and a payment device.

We claim: 
     
         1 . A method for enabling use of loyalty program points as a stored value payment device, the method comprising the steps of:
 receiving, from a first computer associated with a user, a desired value of the stored value payment device;   determining a pricing factor applicable to at least one of the user and the desired value of the stored value payment device;   converting the desired value of the stored value payment device based on the pricing factor to an equivalent value;   sending, to the first computer associated with the user, the determined equivalent value;   debiting a number of loyalty program points from user's loyalty program account; and   creating a stored value payment device having an initial real-time debitable balance equal to a cash value.   
     
     
         2 . The method of  claim 1 , wherein the receiving step comprises receiving a desired cash value of the stored value payment device; the converting step comprises converting the desired cash value of the stored value payment device based on the pricing factor to an equivalent number of loyalty program points; and the sending step comprises sending the determined equivalent number of loyalty program points. 
     
     
         3 . The method of  claim 1 , wherein the receiving step comprises receiving a desired number of loyalty program points of the stored value payment device; the converting step comprises converting the desired number of loyalty program points of the stored value payment device based on the pricing factor to an equivalent cash value; and the sending step comprises sending the determined equivalent cash value. 
     
     
         4 . The method of  claim 1 , wherein the receiving step comprises the steps of presenting a user interface to a user and receiving at least one of a cash value and a number of loyalty program points from the user through the user interface. 
     
     
         5 . The method of  claim 1 , further comprising the step of verifying that the received desired value is a valid desired value input. 
     
     
         6 . The method of  claim 1 , further comprising the step of determining the number of available loyalty program points in the user's loyalty program account. 
     
     
         7 . The method of  claim 6 , further comprising the step of displaying the number of available loyalty program points in the user's loyalty program account. 
     
     
         8 . The method of  claim 1 , further comprising the step of receiving a merchant selection. 
     
     
         9 . The method of  claim 8 , wherein the creating step comprises creating a stored value payment device associated with the at least one merchant selected. 
     
     
         10 . The method of  claim 1 , wherein the creating step comprises creating a physical card having a cash value. 
     
     
         11 . The method of  claim 1 , wherein the creating step comprises creating a stored value payment device that is a payment instrument compatible with near field communication (NFC) enabled devices. 
     
     
         12 . The method of  claim 11 , wherein the creating step comprises the step of linking the cash value to one of an NFC tag and a NFC-enabled device. 
     
     
         13 . The method of  claim 11 , wherein the creating step comprises creating a stored value payment device that is embedded within a mobile application on a mobile device. 
     
     
         14 . The method of  claim 1 , wherein the creating step comprises creating a stored value payment device that is a payment instrument usable with an e-commerce agent. 
     
     
         15 . The method of  claim 1 , wherein the creating step comprises creating a stored value payment device that is a debit or credit card. 
     
     
         16 . The method of  claim 1 , wherein the creating step comprises creating a stored value payment device that is a branded stored value payment device associated with the loyalty program. 
     
     
         17 . A system for enabling use of loyalty program points as a stored value payment device, the system comprising:
 a controller coupled to a loyalty program account of a user and configured to:   receive from a user, a desired value of the stored value payment device, and   convert the desired value of the stored value payment device based on a pricing factor to an equivalent value;   a rules engine coupled to the controller and configured to determine the applicable pricing factor; and   a payment device creator module configured to debit a number of loyalty program points from the user's loyalty program account and to create a stored value payment device having an initial real-time debitable balance equal to a cash value.   
     
     
         18 . The system of  claim 17 , further comprising a user interface for display on a computing device and coupled to the controller. 
     
     
         19 . The system of  claim 18 , wherein the user interface is configured to receive an input from the user of the desired value of the stored value payment device. 
     
     
         20 . The system of  claim 18 , wherein the user interface is hosted on a website associated with the loyalty program. 
     
     
         21 . The system of  claim 18 , wherein the user interface is configured to receive user identification information. 
     
     
         22 . The system of  claim 17 , wherein the rules engine is coupled to a pricing factors database that stores a plurality of points-to-cash pricing factors. 
     
     
         23 . The system of  claim 22 , wherein the rules engine searches for, selects, or otherwise determines an applicable pricing factor from the pricing factors database.